- Tether launched the USA₮ in the US market on Tuesday.
- The new stablecoin is purpose-built to comply with the provisions of the GENIUS Act.
Tether, the world’s largest stablecoin issuer, previously had limited functionality in the United States of America. The company and its flagship USDT stablecoin, pegged 1:1 to the US dollar, weren’t banned per se, but faced hurdles after a restriction in New York, and market participants questioned its future following the passage of the GENIUS Act last year.
Although US-regulated crypto exchanges didn’t delist USDT, they prioritized other stablecoin alternatives, such as Circle’s USDC, to avoid potential regulatory risks. Tether, on its part, also voluntarily geofenced its platform to prevent people outside its “Eligible Contract Participants” from interacting with it for issuance or redemption of USDT, which may trigger a possible run-in with US regulators.
For some reason, Tether didn’t do a thing to align USDT with the GENIUS Act or existing US laws. Instead, it unveiled the USA₮ in September last year, another US dollar-pegged stablecoin tailored for American users. The announcement notably included the company’s appointment of Bo Hines, President Donald Trump’s former adviser on digital assets, as the CEO of Tether USA₮.
Tether’s USA₮ Launch
According to Tether, the USA₮ is now available to US users. The company considers the stablecoin’s launch another milestone not only for its business but for the US dollar in the digital era.
Tether believes the entry of the new stablecoin is right on time as a potential framework for federal oversight of the US digital asset sector emerges. Moreover, it highlighted that the USA₮ enters the market where dollar-backed stablecoins already play a central role in global finance, as the US gears up to reinforce the dollar’s dominance in the world market.
The stablecoin giant stated that the product was purpose-built with the provisions of the GENIUS Act in mind. Hence, it picked a nationally chartered bank, the Anchorage Digital Bank, as the USA₮’s issuer. Meanwhile, it chose Cantor Fitzgerald as reserve custodian and preferred primary dealer. This adheres to the strict asset management and transparency requirements of the new law.
“With the launch of USA₮, we see a digital dollar that is designed to meet federal regulatory expectations,” said Hines. “Our focus is stability, transparency, and responsible governance, ensuring that the United States continues to lead in dollar innovation.”
To date, Tether holds over a $186 market cap from USDT. The USA₮’s rollout further strengthens its dominance in the stablecoin segment, as it initially adds $10 million to its total token supply.
